STAND. COM. REP. NO. 304

 

Honolulu, Hawaii

                  

 

RE:    S.B. No. 1108

       S.D. 1

 

 

 

Honorable Shan S. Tsutsui

President of the Senate

Twenty-Sixth State Legislature

Regular Session of 2011

State of Hawaii

 

Sir:

 

     Your Committee on Human Services, to which was referred S.B. No. 1108 entitled:

 

"A BILL FOR AN ACT RELATING TO INDIVIDUAL DEVELOPMENT ACCOUNTS,"

 

begs leave to report as follows:

 

     The purpose and intent of this measure is to support asset‑building among low- and moderate-income families by clarifying guidelines for Individual Development Accounts and appropriating funds for the operation of Individual Development Account programs.

 

     Your Committee received testimony in support of this measure from the Department of Human Services and Hawaii Alliance for Community-Based Economic Development.

 

     Your Committee finds that Individual Development Accounts are matched savings accounts that enable low-income families to save, build assets, and enter the financial mainstream.  Individual Development Accounts reward working families who are building toward an asset, such as buying a home, paying for college, or starting a small business.

 

     Your Committee further finds that fiduciary organizations that run Individual Development Account programs need access to sufficient operational funds.  Many Individual Development Account programs have long waiting lists of eligible low-income families, but lack the matching funds to support them.  Your Committee also finds that the appropriation in this measure will allow more families in Hawaii to save, build assets, and contribute to the overall economy.

 

     Your Committee understands the concerns regarding replacing the references to the "State" with the "Department of Human Services" in chapter 257, Hawaii Revised Statutes.  Your Committee notes that the Department of Human Services is not the only Department that may issue Individual Development Accounts, and replacing "State" with "Department of Human Services" may limit the kinds of Individual Development Accounts that may be issued.

 

     Accordingly, your Committee has amended this measure by:

 

     (1)  Deleting the amendments to chapter 257 that replaced the word "State" with references to the Department of Human Services; and

 

     (2)  Making technical, nonsubstantive amendments for the purposes of clarity and consistency.

 

     As affirmed by the record of votes of the members of your Committee on Human Services that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1108, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 1108, S.D. 1, and be referred to the Committee on Ways and Means.

 

Respectfully submitted on behalf of the members of the Committee on Human Services,

 

 

 

____________________________

SUZANNE CHUN OAKLAND, Chair